Retirement Ready with David Kopyc - Changes to Your 401K

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Episode Transcript

(00:00):
Friday is always a good day fora lot of reasons, but the biggest
one for me, I get totalk with my friend David Kopec, president
of the Retirement Planning Group. Now, don't forget. You can listen to
David also every Saturday morning on oursister station eight ten and one oh three
one WGY from seven to nine.Good morning, David, how are you,
my brother Jamie? Good morning,Rest in peace, Tony Bennett.

(00:24):
Right heartbreaking, right, heartbreaking,but ninety six, so a good long
life, Thank God, good longlife. And I think he had he
was as good as an artist ashe was a singer. Supposedly, I
guess his artwork. I just turnon the news that his artwork is known
internationally for you know, the beautyof it. Wow, now it's really

(00:45):
going to be worth something, right, Well, that's the guy or gal
passes away, then it starts reallygoing up in value. Yeah. Yeah,
I knew he was an artist,but I didn't know it was that
widely acclaimed. So good for him. Oh god, bless Well that's what
they just said on the news.So well, if it's on the news,
if it's on the news, youknow it's true. You know,
let's talk about something we know istrue, and that's information that you give

(01:08):
us. I hear tell that thereare changes coming to four oh one K
plans, and so we need totalk about it. People who are making
more money are going to have benefitchanges in their four oh one K plans.
What are we talking about here?Yeah, what they're doing, Jamie,
is that they're not eliminating the dollaramount that you can put into the

(01:33):
four oh one K. Okay,but if you're over the age of fifty,
you have what they call a ketchupprovision. This year it's seventy five
hundred dollars, next year it's tenthousand. So this year with the ROTH
and the ROTH four oh one K, you're going to be or the four
o one K and the ROTH fouroh one K, there's changes. This

(01:53):
is what it is. The employersare going to have to make changes before
the end of the year for theirplans because people that are making an excess
of one hundred and forty five thousanddollars annually will no longer be able to
do it pre tax. They're goingto have to do it after tax,

(02:14):
or what they call the ROTH contributionfor the ketchup provision. This is critical
because if you want to be ableto put the money in, you better
make sure that your employers make anadjustments or modification to the plan because if
not your sol Wow, really,so what do we do? I mean,

(02:34):
should we be talking to our employers? So do we talk to our
financial folk? What do we dohere? Well? I think you know,
after tax contribution, after tax contributions, I mean with the ROTH,
the advantage, of course is thatyou've get the tax free growth and the
tax free income. And if that'simportant to you, which I talk about
all the time that the ROTH isone of the greatest things that ever came

(02:55):
out of Washington, you need toget motivated and you need to start knocking
on the door of the HR personor whoever's responsible for your four o one
K through work because you and Iboth know we're going to blink our eyes
and it's going to be December.Oh yeah, why so quickly? So
true? So true? So allright, make sure you get in touch
with your HR person if you're makingover one hundred and forty grand, because

(03:17):
this is, as David said,it's definitely going to affect you anything.
You know, you know, youknow, Jamie, if you work in
a metro area, I don't knowwhere this reasoning comes in. One hundred
and forty five thousand dollars a yearin metro New York, the city.
That's not a lot of money.Oh my gosh. No, not in
a city, are you No,that's not a lot of money at all.

(03:38):
Yeah. And the thing is isthat for people I don't know where
this band came in. I mean, the advantage of the ROTH is because
there's no defined benefit plan, itgave people the ability to fund their retirement.
Now, when you if you impedethat, or you put roadblocks up
where if the employers not motivated tomake changes, you're really sticking it to

(03:59):
the average you know, the middleclass guy that really needs these types of
benefits to survive and retirement. Sothis is what we're talking about, of
course tomorrow on the Retirement Planning Show. All right, and that's seven to
nine. I know because I listenall the time tomorrow morning seven to nine
on our sister station eight ten andone oh three one. You don't want

(04:23):
to miss out on it. You'llget lots of great information. And this
is something that's going to affect alot of us. So you want to
make sure you're listening, you canalways call Dave two talk to him directly
five one eight five eight zero onenine one nine, or head online RPG
retire dot com, rpgretire dot com. David, thank you so so much.

(04:44):
It's always good to talk to you, my brother Jamie. Have a
great weekend, Darling, and we'llsee you next week. Bye bye,